Chapter 12.40
UTILITY SERVICE RATES, RULES AND REGULATIONS
Sections:
12.40.030 Rules and regulations.
12.40.040 Net metering program.
12.40.050 Large generation systems.
12.40.010 Definitions.
In addition to those definitions found in Chapter 12.02 GMC, the following shall apply to this chapter:
“Net metering” means, for billing purposes, the net consumption as measured at the city’s service meter. When net metering is negative, such that the PV-W system production is greater than the customer’s consumption in any month, the city of Gunnison will credit customer for such production. In the event that such negative balance remains after December 31st of each year, the city will pay customer for such negative balance at the city’s average wholesale rate. If customer consumption is greater than the PV-W system production, the customer shall pay for that electric use at the most current published rate on a monthly billing. Customers will be billed the monthly service charge for each month, even in months when negative or no net electric consumption by the customer results.
“Payment due date” means utility charges become due and payable 10 days from the date of billing. (Ord. 4-2021 § 1 (Exh. A), 2021).
12.40.020 Rate tables.
Utility rates and fees are adopted by resolution. Utility rates and fees are defined in the city of Gunnison fee table. (Ord. 4-2021 § 1 (Exh. A), 2021).
12.40.030 Rules and regulations.
A. Electric Service Construction Allowances. Payments by applicants for costs of extending electric lines will be subject to the following rules and regulations:
1. Overhead or underground electric line extensions for secondary or primary service where the use of the service is to be permanent and where a continuous return to the city of sufficient revenue to support the necessary investment is assured will receive a construction allowance. The construction allowance will be equivalent in cost to the gross embedded investment per customer and the city will install, at its expense, necessary overhead or underground electric distribution extension facilities equal to this construction allowance.
2. Applicants required to pay the city for electric line extensions in accordance with GMC 12.30.040 and 12.30.050 shall pay in advance all estimated construction costs for the electric distribution facilities necessary to serve the applicant in excess of the construction allowance.
3. Construction allowance by customer rate class are specified in the city of Gunnison fee table.
4. Said construction payment shall be refundable in part or its entirety during a five-year period immediately following installation. At the end of said five-year period, any remaining construction payment becomes nonrefundable.
5. Calculation and Payment of Refunds. When an additional permanent service customer connects directly to an electric distribution extension upon which there is unrefunded construction payment remaining, the city will recalculate the extension costs by: (a) identifying those costs associated with specifically extending the system to the additional permanent service; and (b) recalculating the common costs and apportioning those costs equally between customers.
6. Unrefunded construction payments paid in excess of this recalculated cost will be refunded after factoring in the construction allowance per customer. In no case shall refunds be made which exceed in total the amount of construction payment made by any customer. In no event shall any customer who has terminated service be eligible for any refund after such termination.
B. Application for Monthly Service.
1. Each customer requesting utility service shall sign a standard application for service. The customer shall supply information requested by the city including but not limited to information related to the manner in which the utility will be utilized.
2. By signing the application, the customer agrees to be bound by the ordinances which form a contract of service.
3. Failure of the city to enforce or insist upon strict compliance with any ordinance shall not constitute a waiver.
C. Deposit Requirements for Monthly Service. The city may require any customer to give an approved guarantee that their bill for service will be paid promptly, by providing a letter of credit from a utility company who has provided services to the customer within the past six months, reflecting the customer has not had any delinquencies within the previous 12-month period. In lieu of such a guarantee, the city may require any customer to make a cash deposit sufficient to secure the payment of an estimated billing not to exceed a 90-day billing, but if a deposit is required it may never be less than $100.00. The cash deposit will be returned to the customer when the service is ordered discontinued and all charges for services are paid in full. The city will apply the amount of the refundable deposit to any charges for services outstanding at the time of the discontinued service. Any deposit remaining will be refunded to the customer as quickly as practicable.
D. Default of Payment for Monthly Service. When a customer is in default of payment and delinquent, the city may discontinue its utility service to such delinquent customer. The service of any customer shall not be discontinued except upon written notice of at least 10 days, advising the customer of such fact, or in an extreme emergency that threatens the health, safety, and welfare of the citizens of the city of Gunnison.
E. Termination of Monthly Service.
1. The city shall not discontinue the service of any customer for violation of any rule of the city and/or for nonpayment of any sum due for utility service except upon written notice mailed by first class mail or delivered at least 10 days in advance of the proposed termination date, advising the customer of what particular rule has been violated for which service will be discontinued, and/or the amount due and the date by which the same shall be paid.
a. In the event the customer previously has executed a third-party notification form indicating a third party to whom notices of discontinuance or terminations are to be sent, written notice also shall be mailed by first class mail or delivered at least 10 days in advance of the proposed termination date to said third party. The notice of discontinuance shall be conspicuous in nature and in easily understood language. The heading of the notice of discontinuance shall be in block letters. The heading shall contain, as a minimum, the following warning:
THIS IS A FINAL NOTICE OF DISCONTINUANCE OF ELECTRIC UTILITY SERVICE AND CONTAINS IMPORTANT INFORMATION INVOLVING YOUR LEGAL RIGHTS AND REMEDIES.
b. The full statement shall also be written in Spanish.
c. This rule shall not apply where a bypass is discovered on the customer’s service meter, or any hazardous condition on a customer’s premises, or in the case of a customer utilizing service in such manner so as to make it dangerous for occupants of the premises, thus making an immediate discontinuance of service to the premises imperative.
2. Delinquency in payment for service rendered to a previous occupant of the premises to be served and unpaid charges for service or facilities not ordered by the present or prospective customers shall not constitute a sufficient cause for refusal of service to a present or prospective customer; provided, however, the city may decline to furnish service at the same premises for the use of a delinquent customer by subterfuge in any manner.
a. Subterfuge includes, but is not restricted to, an application for service at a given location in the name of another party by an applicant whose account is delinquent and who continues to reside at the premises.
b. Service shall not be discontinued or refused for failure to pay any indebtedness except as incurred for utility services rendered by the city.
3. In situations involving permanent residents in multi-unit dwellings known by the city to exist where the utility service for the entire dwelling is recorded on a single meter, the city, at least 10 days prior to the proposed termination date for the dwelling involved, shall make every reasonable effort to:
a. Deliver a written notice to each individual dwelling unit within the multi-unit dwelling advising that a notice of discontinuance has been sent to the party responsible for payment of electric bills for the dwelling, the date upon which termination will become effective, and how the individual resident in the dwelling unit may contact the city for additional information concerning the proposed termination; or
b. Mail such notice by first class mail to the addressee or occupant of each unit of the multi-unit dwelling, and to the extent possible, posting a copy of said notice in at least one of the common areas of the multi-unit dwelling.
4. Notice of discontinuance of service shall be mailed or delivered in accordance with subsection (E)(1) of this section. As a minimum, said notice shall advise the customer:
a. How to contact the city, without expense to the customer of a toll call, to resolve any dispute with respect to the amount or date due, and/or with respect to violation of any rule.
b. That the customer is entitled to a hearing in person before termination of service at a reasonable time and place within 10 days of the date of the notice of discontinuance before the city manager or his designee.
c. That the customer has the right to make an informal complaint to the city council by letter or in person.
d. That the customer has the right to request, in writing, a hearing before the city council.
e. The city council, at its discretion and upon such terms as it may prescribe, may order the city not to terminate service pending an investigation and/or hearing.
f. That in the event a hearing before the city council on the proposed discontinuance of service is requested by the customer, the city council, upon motion by the finance department, may order the customer to post a deposit or an additional deposit with the city in such amount as the city council deems reasonable under the circumstances, which deposit may be in addition to any deposit previously posted with the city.
g. That the customer may avoid termination of service by paying the current month’s bill in full and entering into a reasonable installment payment plan with the city to pay the past due balance in no more than six equal monthly installments.
h. That in the event the customer is unable to pay for service as regularly billed by the city, or is able to pay for such service but only in reasonable installments, and there is a medical certification delivered to the city indicating that termination of service would be especially dangerous to the health or safety of the customer or a permanent resident of the customer’s household, that there will not be discontinuance of service for 60 days from the date of the medical certification with a possible 30-day extension upon delivery of a second medical certification.
5. Service shall not be disconnected:
a. If all current bills are paid when due and all past due amounts are being amortized by reasonable installment payments. The due date on the bill must be specifically indicated on the bill and the due date shall be no earlier than 10 days subsequent to the mailing or delivery of the bill. “Current bill” means that portion of the bill which is not 30 days past the date of billing. The minimum reasonable installment payment is that which pays a current bill in full and is at least one-sixth of any past due balance. A reasonable installment payment plan shall require that a past due balance be paid off in no more than six equal monthly installments. The city has the right, in the event there is a breach in the installment agreement, to discontinue service upon the seventh day following the mailing of a notice of termination and to require payment in full and the posting of a reasonable deposit in order for the customer to be reconnected.
b. A “reasonable installment” is defined as one which is at least one-sixth of the past due balance and is made no less frequently than once a month.
c. Between 12:00 noon on Friday and 8:00 a.m. the following Monday, or between 12:00 noon on the day prior to 8:00 a.m. on the day following any federal holiday or city-observed holiday.
d. During any period when termination of service would be especially dangerous to the health or safety of the residential customer or a permanent resident of the customer’s household and such customer establishes that he is unable to pay for the service as regularly billed by the city, or he is able to pay for such service but only in reasonable installments.
e. “Termination of service that would be especially dangerous to the health or safety of the residential customer or a permanent resident of the customer’s household” means that termination of service would aggravate an existing medical condition or create a medical emergency for the customer or a permanent resident of the customer’s household. Such shall be deemed to be the case when a physician licensed by the state makes a certification thereof in writing and said certification is received by the city.
f. In the event a medical certification as aforesaid is delivered or received by the city, the non-termination of service as herein prescribed shall be effective for 60 days from the date of said medical certification. One 30-day extension of nontermination of service pursuant to this subsection may be effected by delivery to or receipt by the city of a second medical certification, as aforesaid, prior to the expiration of the initial 60-day nontermination period. A residential customer may invoke the provisions of subsection (F)(5)(d) of this section no more than once during any period of 12 consecutive months.
g. Until the city has made a reasonable effort to give notice of the proposed discontinuance in person or by telephone both to the residential customer (or to a resident of the customer’s household 18 years of age or over) and to any third party who is listed by the customer on a third-party notification form.
h. In the event a customer at any time proffers full payment of any bill by cash or bona fide certified check to a representative of the city. The provisions herein shall not preclude the city, by tariff rule and rate, from making a reasonable charge for a service call.
F. Reconnection of Monthly Service.
1. The city shall impose a reconnection fee to the customer requesting reconnection in the event service has been discontinued and a break in service has occurred.
2. Fees may be charged to the customer by the city for collection of accounts in default of payment and for restoration of service to customers in default of payment.
3. When a customer is in default of payment, the city shall have the right to:
a. Impose a collection fee if and whenever the city shall have been required to initiate collection efforts against the customer and if in response thereto the customer shall pay the delinquent amount without the city resorting to disconnection of service. The city shall waive the payment of one such collection fee if the customer has not defaulted in payment at any time in the 12 months immediately preceding the month for which said charge is to be waived.
b. Impose a reconnection fee if and whenever the city initiates collection efforts against the customer and disconnects service as a consequence and has to reconnect it.
4. The reconnection and collection fees are specified on the city of Gunnison fee table.
G. Equal Pay Program.
1. Customers who do not have a pending notice of discontinuance of service and have had service for at least the 12 preceding months may elect, at their option, to pay monthly bills for service on the equal pay program beginning with any billing month. Any customer electing the equal pay program will pay a monthly amount equal to one-tenth of the total of the most recent 12 months’ bills. Said monthly payment shall be made for 12 successive months or the months remaining in the current year, whichever is less.
2. After December 31st of any year, any remaining balance due or credit balance will be taken into consideration for the calculation of the equal pay amount for the next 12-month cycle. Payments made in excess of the equal pay amounts may be used to adjust the equal pay billing obligation for the remainder of the year.
3. If three equal pay billing obligations in any 12-month period are late or not made, the customer will be removed from the equal pay program. Upon termination of service of a customer on the equal pay program, the customer is subject to removal from the plan and the entire outstanding amount of the account for actual usage shall be due immediately or refunded as applicable.
H. Lien on Premises – Owner Liable.
1. All delinquent water, sewer, and refuse charges shall become a lien upon the premises to which these services are delivered from the date same becomes due and until paid. The owner of the lot or building shall be liable for payment of all these charges levied against the property for these services used or taken upon the property and, if delinquent charges are not paid within 30 days of the date of billing, the lien may be made effective by the city certifying the amount of the charges and the period covered by the charges and giving a legal description of the premises to the county treasurer, to be collected and paid over by the county treasurer in the same manner as taxes are authorized to be collected and paid over by the county treasurer. The city may add to the amount due the late payment penalty, and costs incurred by the city in attempting to collect the amount due, including attorney’s fees.
2. An occupant or tenant’s obligation to pay for these services under any occupancy or rental agreement shall not relieve the owner from such liability or lien when these service bills become delinquent.
3. No change of ownership or occupancy shall affect the application of this subsection and failure of any owner to learn that he purchased property against which a lien for these services exists shall in no way affect his liability for payment in full.
4. The lien under this section shall be prior to any and all other liens and encumbrances filed subsequent to the certifying of the lien to the county treasurer, but shall be subject to all general taxes and all local improvement assessments, whether levied prior or subsequent thereto.
I. Late Payment Penalties. If the payment of any electric, water, sewer and/or refuse service bill is not made within 30 days from the date of billing, there shall be charged a penalty of 10 percent for late payment; however, if the customer has not previously been in default of a payment for the preceding 12-month period, the penalty shall be waived by the director of finance.
J. Adjustments for Meter and Billing Errors.
1. When meter errors or clerical errors are discovered, amounts underbilled shall be charged for a period not to exceed six months from discovery to the date the error was known to affect billing. Amounts overbilled shall be refunded for a period not to exceed one year from discovery to the date the error was known to affect billing.
2. When a water leak is discovered on the customer’s side of the water meter, there shall be no credit given for water usage. For commercial accounts, if the leak is confirmed by the city to have entered the ground rather than the city sewer collection system, a maximum of a three-month credit may be calculated based on estimated usage during the same period in the prior year.
K. Availability of Service Fee.
1. An availability of service fee will be charged for each parcel of real property in the city of Gunnison or service area of the city of Gunnison which has electric, water, and/or sewer service available to that parcel and is connected to the water distribution, sewer collection and/or electric distribution systems but which parcel is not currently utilizing service.
2. An availability of service fee will be charged for each residential parcel of real property in the city of Gunnison which has refuse service available to that parcel and includes a residential structure but which parcel is not currently utilizing refuse services. (Ord. 3-2024 § 1; Ord. 3-2023 § 1; Ord. 4-2021 § 1 (Exh. A), 2021).
12.40.040 Net metering program.
A. Applicability. The net metering program is applicable to residential and commercial electrical customers who install eligible solar photovoltaic or wind turbine (PV-W) systems less than or equal to 25 kW, whose electric service is supplied by the city of Gunnison. All customers taking advantage of this program shall be located within the city of Gunnison’s service territory.
B. Standards of Interconnection. All customers taking advantage of this program shall agree to the policy and guidelines for interconnection for parallel installation and operation of customer-owned renewable electric generating facilities.
C. Metering Ownership. The city of Gunnison shall, at its sole discretion, provide, own, operate, and maintain all meters and metering equipment necessary to measure both the energy supplied by the city of Gunnison and the energy produced by the PV-W system. The city of Gunnison reserves the right to utilize measurements from its meter of the energy produced by the PV-W system for billing the unit’s productions.
D. Measurement Period. The measurement period referred to in this section is April 1st to March 31st of the following year.
E. Grandfathering. All customers who have photovoltaic systems operating prior to September 8, 2015, whose generation exceeds their consumption from April 1, 2018, through March 31, 2019, may continue to operate under the terms of Ordinance No. 10, Series 2003. Any increase in the size (kW) of their system, replacement or upgrade of the system, or ownership changes for the property served by the system, shall require the customer to operate under the terms of this title.
F. Fees and Reimbursement. Fees referenced in this net metering program shall be set according to the rate tables in GMC 12.40.020, and amended from time to time as determined by the city council of the city of Gunnison. Customers shall be charged fees and receive reimbursements as follows:
1. Customers will be billed the monthly service charge for each month, even in months when negative or no net electric consumption by the customer results.
2. The city of Gunnison will charge the customer an additional net metering fee per month for administrative expenses and additional meter costs that are incurred over those of a typical meter.
3. Generation offsets consumption of the PV-W system at the retail rate. If customer consumption, taking into consideration prior month rollover credits during the measurement period, is greater than the PV-W system production, the customer shall pay for that electric use at the retail rate established in GMC 12.40.020 on a monthly billing.
4. When net metering is negative, such that the PV-W system production is greater than the customer’s consumption in any month, the excess will be carried forward for the use during the subsequent month(s) during the measurement period.
5. In the event that such negative kilowatt-hour balance remains after the measurement period, the city of Gunnison will credit the customer for such negative balance at the city of Gunnison’s wholesale rate. (Ord. 4-2021 § 1 (Exh. A), 2021).
12.40.050 Large generation systems.
A. Applicability. Residential, commercial, and industrial electrical customers who install eligible solar photovoltaic or wind turbine (PV-W) systems greater than 25 kilowatts are considered large generation systems and subject to the provisions of this section. All customers taking advantage of this program shall be located within the city of Gunnison’s service territory. Systems over 25 kilowatts will not be net metered.
B. Standards of Interconnection. All customers installing a large generation system shall agree to the policy and guidelines for interconnection for parallel installation and operation of customer-owned renewable electric generating facilities.
C. Metering Ownership. The city of Gunnison shall, at its sole discretion, provide, own, operate, and maintain all meters and metering equipment necessary to measure both the energy supplied by the city of Gunnison and the energy produced by the PV-W system. The city of Gunnison reserves the right to utilize measurements from its meter of the energy produced by the PV-W system for billing the unit’s productions.
D. Energy Purchase Contract. Large generation systems are required to enter into an energy purchase contract.
E. Fees and Reimbursement. In addition to regular fees outlined in GMC 12.40.020, customers shall be charged fees and receive reimbursements as follows:
1. The large generation system interconnection fee set in GMC 12.40.020 will be charged each month based on the size (nameplate rating) of the system.
2. Energy produced by the customer and consumed simultaneously on site offsets retail energy purchased from the city, and therefore generation is offset at the retail rate.
3. The sum of all instantaneous excess generated energy shall be reimbursed monthly at the avoided cost rate. (Ord. 4-2021 § 1 (Exh. A), 2021).